U.S. companies are forcing workers to train their own foreign replacements

Axios ^ | Dec 29, 2019 | Stef W. Kight

[NobleFree]

Opponents of job outsourcing are making a holiday-season appeal to President Trump: Stop U.S. companies from forcing American workers to train the very same cheaper foreign laborers who will soon replace them.

Why it matters: Trump promised voters he'd end abuses of worker visa programs and save U.S. jobs — but as he campaigns for re-election, advocates say he hasn't done enough.

Driving the news: AT&T is poised to send thousands into the new year hunting for new jobs after assigning them to train their own foreign replacements, according to conversations with current and former workers and documents obtained by Axios.

• Many have worked for the company for over a decade. They aren't being offered severance or early retirement, and may not easily find a comparable job elsewhere with similar pay.

What they're saying: Sara Blackwell, a Florida-based lawyer who represents Americans displaced by workers on visas or overseas, told Axios: "American workers are tired of waiting for President Trump to do something on this issue."

• "They’ve gone from great hope in President Trump's administration, to great discouragement."
• She sent letters to Sen. John Cornyn (R-Texas.), Texas Gov. Greg Abbott and Dallas Mayor Eric Johnson, as AT&T is headquartered in Dallas.
• She also met this month to discuss the problem with White House officials.
• The White House did not respond to a request for comment.

Details: Despite receiving a $3 billion tax cut last year, AT&T announced new and expanded alliances with big outsourcing companies to replace workers with foreign or cheaper domestic talent.

• Like many major U.S. companies, AT&T has been shifting jobs for years now — but 2019 was especially noteworthy, as workers claimed that as many as 3,000 finance jobs were being outsourced to Accenture. AT&T denied the 3,000 figure, but declined to provide Axios with its own number.
• AT&T also signed multi-year deals with IBM, Tech Mahindra and Amdocs this year. Accenture, IBM and Tech Mahindra were in the top 10 companies to request H-1B high-skilled worker visas this year.
• "We are continuously working to be more efficient in our operations," AT&T's Jim Kimberly told Axios. When possible, AT&T is "helping employees find other positions within the company,” he said.

Current and former Department of Homeland Security officials who spoke to Axios expressed frustration that more isn't being done to keep foreign worker visa programs from undercutting U.S. workers.

• Lawmakers have signaled bipartisan support for reforms to high-skilled immigrant visas that could help.
• For years now, the Trump administration has talked about policy changes such as ending work authorization for the spouses of certain H-1B visa holders. But the proposal prompted outrage from tech giants, and it has yet to be finalized.

By the numbers: There are few comprehensive studies and little agreement on the scope of the phenomenon, experts told Axios, because contracts and outsourcing processes are typically kept quiet.

• Blackwell said past contracts she's seen lead her to believe that as many as nine in 10 of those impacted by AT&T's outsourcing may end up training foreign replacements.
• It's a common business model that's been used by other U.S. companies, including Disney, Verizon, Bank of America, Toys 'R' Us and Southern California Edison.

What they're saying: Axios spoke with workers who have already transitioned or will switch in January to working for outsourcing companies.

• Three current or recently-fired AT&T employees broke down in tears during telephone interviews.
• Typically, workers are guaranteed 12 months at the outsourcing company, after which they will likely be let go.
• Only a handful are offered severance or early retirement.
• "Folks aren't going on vacation, they're cutting back on their Christmas shopping," one person said. "If you know that you're going to be losing your job, you don't want to spend the money."

How it works: Workers may be assured their job will not change when they are "rebadged" to work for a contractor. "The sad reality is you’ve just been terminated without your severance," said one worker Axios interviewed. "You’re at the mercy of a company that doesn’t really want you."

• Workers described shock and confusion when they were told during a scripted phone call that after a decade or longer at AT&T, they'd have to work for a contractor or resign. Some were told they could not apply for other jobs inside AT&T.
• Some were told they were needed for a "knowledge transfer" — then tapped to train people on work visas or overseas who would replace them.
• A presentation obtained by Axios outlining the knowledge transfer process for AT&T and Accenture includes a slide on how to interact with Indian workers.

[NobleFree]

“advocates say he hasn’t done enough.”

Are you saying he HAS done enough?

[NobleFree]

Been going on for decades and our Government is not stopping this anytime soon

I thought the swamp was going to be drained.

[Bitman]

Happening in the IT area of a big box retailer that likes the color blue as I type.

[NobleFree]

these are people who focus on a single, solitary issue 24/7/365.

The threat of having one's livelihood stolen can do that to a person.

[StolarStorm]

"includes a slide on how to interact with Indian workers"

Well, isn't that special.

[steve8714]

Boeing just got burned also. I notice the phrase, “...or cheaper domestic talent”. That changes everything, yes?

[steve8714]

AT&T hates Trump.

[takebackaustin]

Please elaborate. delicious Schadenfreude. Thanks!

[txnativegop]

No, but I am saying that given the incessant BS he has to put with he is doing the best he can.

[NobleFree]

“...or cheaper domestic talent”. That changes everything, yes?

If "domestic" means "already here on a work visa", no.

[impimp]

I am glad for ATT that they found a cheaper way to provide their services to Americans. America will benefit.

[Mariner]

H-1B is a disaster and all its advocates anti-American.

But one could say little more in defense of a tech worker that trains their foreign replacement.

Just say no and go about finding something else.

[NobleFree]

“advocates say he hasn’t done enough.”

Are you saying he HAS done enough?

No

Then the advocates are correct.

[NobleFree]

America will benefit.

America benefits from - nay, requires - a thriving middle class. Giving American jobs to foreign serfs goes in the opposite direction. That's why our President has proclaimed "Hire American".

[txnativegop]

President Trump does not have the power to stop companies from having employees train their own replacements. That is what the “advocates: were b!tching about. Trump has done what he can, now the shareholders have to do the rest.

[NobleFree]

Just say no

Not so easy when you don't know when the next paycheck will be coming.

[NobleFree]

Trump has done what he can

BS. For one thing, he could have used the bully pulpit to much greater effect - more tweets about American jobs instead of Mika's facelift.

[Mariner]

“it very possibly is worth it.”

Bullshit.

They are already screwed.

So they decide to take down their fellow workers and the nation with them?

I have zero, ZERO sympathy for anyone who trains their foreign replacement for anything.

And some degree of animus.

I’ve been in tech for 40 years and I’ve seen hundreds such weaklings.

[StolarStorm]

That’s why you always have to keep enough savings so you can tell these jackals to “f off.” It’s going beyond tech into all sorts of fields now. The native born middle class is being systematically eliminated. When enough intelligent and motivated people are outsourced, there will be reckoning. Traitors will be recognized for what they are.

[Cottonpatch]

That’s been going on for about ten years. The Abbott Company in Irving or Dallas did it to my niece.